The Legion M Film Fund: Your Questions Answered

The Legion M Film Fund is NOW OPEN for investment to all investors. We wanted to take a moment to answer the most common questions our investors have had about this latest investment opportunity. As always if you have further questions please post them at the bottom of our investment page.

What is the Film Fund?

The Legion M Film Fund is an investment offering that allows you to invest in the distribution of movies. It’s a different type of investment, with different risk/reward characteristics than other types of movie investments. For more information, please check out the offering page. 

How is it different from the investments Legion M has offered before?

The offerings Legion M have made in the past are all long-term, high risk/reward investments. For example, if you invest in Legion M, you own stock in the company and a stake in our long-term success. If you invest in a film, you own a royalty stream related to that movie that lasts in perpetuity. The Legion M film fund is different. We’re targeting finished films with “last-in, first-out” financial terms, shorter timelines, and lower risk/reward profiles. The returns from one film automatically roll over to the next, and investors can “cash out” by redeeming some or all of their interests. 

What sort of deals are you targeting?

With the Film Fund, we’re targeting deals with “last money in, first money out” terms. “Last money in” means we’re investing in the release of finished films. “First money out” means we’re at the front of the line to receive revenue. Both of these factors can dramatically reduce risks inherent in the movie industry.

Is the Film Fund part of Legion M?

The Legon M Film Fund is a wholly-owned subsidiary of Legion M. It is owned and managed by Legion M, but is a distinct legal entity with its own operating agreement and bank account. 

Does the Film Fund help Legion M?

100%! In the past, Legion M's releases have relied on 3rd party distribution. financing. Now we're allowing our community to participate via the Film Fund. The bigger the Film Fund gets, the stronger Legion M becomes -- and the larger the projects we can pursue. 

Does the Film Fund “take” profits that would otherwise go to Legion M?

No. The type of financing provided by the film fund is typically provided by professional 3rd party investors. With the Film Fund, Legion M has opened this opportunity to fans rather than seeking it from 3rd parties. In addition, the Film Fund helps promote each project by empowering Film Fund investors to share the movie with their communities. 

What kind of projects does the Film Fund invest in?

With the Film Fund, we’re targeting distribution projects we believe have potential to provide a conservative return (typically capped per project) within 6-24 months. Returns from one investment automatically roll over to the next. 

What kind of return can I expect as an investor?

It’s impossible to say with certainty, as this is a new fund without an operating history. Your return as an investor will depend on several factors, including the performance of each movie, the percentage of assets the fund is able to deploy, and the costs incurred in operating the fund. Our goal is to provide an annual return of 7.5% to 15% or more, but as with any investment, there are no guarantees. 

Can you lose money?

Yes - risk is part of any investment. We’re working to reduce it, but there are plenty of ways things can go wrong—from partners who refuse to pay to companies that go bankrupt, contracts that are disputed, or movies that flop hard. As always, you should never invest more than you can afford to lose in any speculative investment. 

What’s the first project?

The first Film Fund investment is Fackham Hall, a movie Legion M is co-distributing with Bleecker Street. 

How is Fackham Hall performing?

We don’t have any official data yet, but the movie's performance has been very encouraging. The film was a top 10 comedy (and top 40 release overall!) on Amazon for 7+ weeks after release. We have every reason to believe this will be a great flagship project for the Film Fund! 

What is an “Accredited Investor”?

"Accredited" is an SEC designation for investors that meet personal wealth thresholds. There are several ways to qualify, but the most common is to have at least $1 million in liquid assets OR $300,000 in annual salary for the last two years. To participate as an accredited investor in this offering you will need to provide backup documentation or verification from a tax advisor/money manager. If you are unsure whether you qualify, click here to learn more.

How do redemptions (“Cash Out”) work?

You have the opportunity to request a full or partial redemption of your membership interests (i.e. “cash out”) each quarter, subject to availability of funds. If your money is currently invested in a project, you’ll need to wait until the project returns funds to receive them.

Will the fund pay distributions?

The fund has the option to pay distributions, but does not currently have a plan to do so. If enough investors are interested in receiving regular distributions, we’re happy to consider them. Otherwise you can do a partial cash-out. 

Can I invest through an IRA?

Yes. Dealmaker (our intermediary) allows you to invest through a self-directed IRA. You can learn more about that here.

If I invest now, am I automatically in future projects too?

As returns come back from one project, they are automatically rolled into the next - unless you cash out.

Can I roll over proceeds from past projects like You Can Call Me Bill or My Dead Friend Zoe directly into the Film Fund without fees?

Unfortunately, no. Returns from movie projects are held by Wefunder – you’ll need to pull the money out of your Wefunder account and reinvest it in the film fund. 

Why is Legion M offering the Film Fund now?

After nearly a decade in the industry, we believe Legion M has leveled-up to the point where we have access to the kind of deals that make a fund like this work. We are growing as a distributor, and are at the point where we can release (or co-release) larger and larger films. We believe the Film Fund is a critical strategic asset that will allow Legion M to continue our growth as a distributor. 

Most importantly, when we polled our community, the idea was met with overwhelmingly positive feedback. You liked the idea, so we built it!